Statutory Rules

1980 No.

REGULATIONS UNDER THE AUDIT ACT 1901*

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Audit Act 1901.

Dated this             day of             1980.

Governor-General

By His Excellency’s Command,

Minister of State for Finance

AMENDMENTS OF THE FINANCE REGULATIONS†

Commencement

1. These Regulations shall come into operation on 1 July 1980.

2. After Part II of the Finance Regulations, the following Part is inserted:

“ PART IIa—OBLIGATIONS INVOLVING EXPENDITURE OF PUBLIC MONEYS

Conditions subject to which obligations may be incurred

“ 44a. (1) Subject to sub-regulation (2), an officer shall not incur, on behalf of, or for the purposes of, the Commonwealth, an obligation involving expenditure of public moneys, being an obligation in respect of—

(a) the execution of works or the supply of services for or by the Commonwealth; or

† Statutory Rules 1912 No. 523 as amended by Statutory Rules 1943 No. 32; 1953 No. 3; 1959 No. 9; 1961 Nos.77 and 122; 1964 No. 21; 1965 Nos. 32 and 169; 1966 No. 176; 1968 No. 87; 1972 No. 31; 1974 No. 129; No. 156; 1976 Nos. 91 and 260; and 1977 No. 111.

10779/80 Cat. No.                 —Recommended retail price 40c                                                    11/25.3.1980

(b) the purchase of chattels or other property for or by the Commonwealth,

unless—

(c) where a payment in connection with the obligation would be required to be made during the financial year that is current when the obligation is incurred—

(i) moneys have been appropriated under a head of expenditure in an Appropriation Act for that financial year that are sufficient to meet the payment and all other payments that have been met, or may reasonably be expected to be met during that financial year, from that head of expenditure;

(ii) provision for such an appropriation has been included in a proposed law submitted to the Parliament; or

(iii) the Minister has given his approval to the obligation being incurred; and

(d) where a payment in connection with the obligation would be required to be made after the end of the financial year that is current when the obligation is incurred—

(i) approval has been given by the Minister for the payment to be met from moneys to be appropriated for the service of, or for specified expenditure in respect of, such financial year as the Minister specifies; or

(ii) the obligation is specified in, or is included in a class of obligations that is specified in, a declaration made by the Minister under sub-regulation (3).

“ (2) Sub-regulation (1) does not apply in relation to an obligation of a kind referred to in that sub-regulation if the obligation is incurred in pursuance of the provisions of an enactment authorizing the incurring of the obligation.

“ (3) The Minister may, by instrument in writing, declare, in relation to an obligation of a kind referred to in sub-regulation (1) that is specified in, or is included in a class of obligations specified in, the instrument, that any payment in connection with the obligation, being a payment that is to be made after the end of the financial year that is current when the obligation is incurred, may be made without the approval of the Minister referred to in sub-paragraph (1) (d) (i) in relation to the payment being obtained.

Rights and liabilities of parties to obligation

“ 44b. The rights and liabilities of the parties to an obligation of a kind referred to in sub-regulation 44a (1) are not affected by reason of the fact that the obligation was incurred in contravention of that sub-regulation.”.

3. Regulation 46 of the Finance Regulations is repealed and the following regulations are substituted:

Requisitions for supplies

“ 46. (1) Subject to sub-regulation (3), where supplies are required by a Department for the proper conduct of the public service, a Requisition for those supplies shall be prepared by an officer of the Department—

(a) in the case of supplies that are to be obtained from or through the Department of Housing and Construction and the appropriation for which is under the control of that Department—in accordance with a form approved by the Minister of State for Housing and Construction; or

(b) in the case of any other supplies—in accordance with Form 11.

“ (2) A Requisition for supplies—

(a) shall contain a description of the supplies, stating, where appropriate, the quantity of the supplies;

(b) shall—

(i) in the case of supplies that are to be executed, furnished or performed under an existing contract—identify the contract and specify the contract price;

(ii) in the case of supplies that are to be executed, furnished or performed in accordance with a quotation obtained in relation to the supplies—identify the quotation and specify the price quoted on the quotation; or

(iii) in the case of any other supplies—specify the estimated cost of the supplies; and

(c) in the case of a Requisition for supplies of a kind referred to in paragraph (1) (a)—

(i) shall contain a request to execute, furnish or perform the supplies addressed to the Department of Housing and Construction and signed by the Minister of State administering the Department requiring the supplies or by an officer appointed by that Minister for the purpose; and

(ii) shall be forwarded to the Department of Housing and Construction.

“ (3) Sub-regulation (1) does not apply in relation to supplies of a kind in respect of which the Secretary or an officer authorized by him for that purpose has determined in writing that the issue of a Requisition is not required.

“ (4) In sub-regulation (2), a reference, in relation to a Department, to the Minister of State administering the Department shall, where the Department is a Department of the Parliament, be read as a reference to—

(a) in the case of the Department of the Senate—the President of the Senate;

(b) in the case of the Department of the House of Representatives—the Speaker of the House of Representatives; or

(c) in any other case—both the President of the Senate and the Speaker of the House of Representatives.

Supplies obtainable under existing contract

“ 46a. Where supplies that are required by a Department can be executed, furnished or performed under an existing contract between the Commonwealth and a supplier or, where 2 or more such contracts exist, under 2 or more of those contracts, those supplies shall not be obtained otherwise than under that contract or one or more of those contracts.”.

Requisition for supplies to be supported by certificate

4. Regulation 47 of the Finance Regulations is amended—

(a) by omitting sub-regulation (1) and substituting the following sub-regulation:

“ (1) Subject to sub-regulation (2), a Requisition for supplies shall—

(a) where a payment in respect of the supplies is to be made during the financial year that is current when the Requisition is prepared—be supported by a certificate signed by a prescribed officer in relation to the Requisition certifying—

(i) that there is sufficient appropriation to meet the payment; or

(ii) that the obligation in pursuance of which the supplies are required was incurred with the approval of the Minister; and

(b) where a payment in respect of the supplies is to be made after the end of the financial year that is current when the Requisition is prepared—be supported by a certificate signed by a prescribed officer in relation to the Requisition certifying—

(i) that sufficient appropriation will be available to meet the payment; or

(ii) that the payment is an exempt payment.”;

and

(b) by adding at the end thereof the following sub-regulations:

“ (3) A prescribed officer in relation to a Requisition for supplies shall not, for the purposes of sub-regulation (1)—

(a) certify that there is sufficient appropriation to meet a payment that is to be made in respect of the supplies during the financial year that is current when the Requisition is prepared unless—

(i) moneys have been appropriated under a head of expenditure in an Appropriation Act for the current financial year that are sufficient to meet the payment and all other payments that have been met, or may reasonably be expected to be met during that financial year, from that head of expenditure;

(ii) provision for such an appropriation has been included in a proposed law submitted to the Parliament; or

(iii) moneys standing to the credit of the Trust Fund under the head to which expenditure in respect of the supplies is chargeable will, at such time as the payment is required to be made, be sufficient to pay the amount of the payment;

(b) certify that sufficient appropriation will be available to meet a payment that is to be made in respect of the supplies after the end of the financial year that is current when the Requisition is prepared unless the Minister has given, for the purposes of paragraph 44a (1) (d), an approval in respect of the payment; or

(c) certify that a payment referred to in paragraph (b) is an exempt payment unless the obligation in pursuance of which the supplies are required is specified in, or is included in a class of obligations that is specified in, a declaration made by the Minister under sub-regulation 44a (3).

“ (4) In. sub-regulation (1), “ prescribed officer ”—

(a) in relation to a Requisition for supplies of a kind referred to in paragraph 46 (1) (a)—means the Permanent Head of the Department of Housing and Construction or an authorized officer; and

(b) in relation to any other Requisition—means the Permanent Head of the Department requiring the supplies or an authorized officer.”.

5. Regulations 48 and 49 of the Finance Regulations are repealed and the following regulation is substituted:

Approval of Requisitions

“ 48. After the provisions of regulations 46 and 47 have been com plied with in relation to a Requisition for supplies, the Requisition shall be submitted for approval—

(a) in the case of a Requisition for supplies the appropriation for which is under the control of a Department of the Parliament—

(i) where that Department is the Department of the Senate—to the President of the Senate or an officer-appointed by him for the purposes of this regulation;

(ii) where that Department is the Department of the House of Representatives—to the Speaker of the House of Representatives or an officer appointed by him for the purposes of this regulation; or

(iii) where sub-paragraph (a) or (b) does not apply—to both the President of the Senate and the Speaker of the House of Representatives or to an officer appointed by both of them for the purposes of this regulation;

(b) in the case of a Requisition for supplies of a kind referred to in paragraph 46 (1) (a)—to the Minister of State for Housing and Construction or to an officer appointed by him for the purposes of this regulation; or

(c) in any other case—to the Minister of State administering the Department requiring the supplies or to an officer appointed by him for the purposes of this regulation.”.

Orders for approved supplies

6. Regulation. 52a of the Finance Regulations is amended by omit ting sub-regulation (1) and substituting the following sub-regulations:

“ (1) Where a Requisition for supplies has been approved by the person or persons to whom it had been submitted for approval under regulation 48, the Permanent Head shall issue a Purchase Order in accordance with Form 13 in respect of the supplies specified in the Requisition.

“ (1a) It shall be sufficient compliance with the requirements of sub-regulation (1) if an authorized officer issues the Purchase Order therein referred to.”.

The Schedule

7. The Schedule to the Finance Regulations is amended by omitting from Form 11—

“ Funds are available

.........................................

Authorizing officer                          /          /     ”.

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